Simple Profitable Method
- Thread starter trader28
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Bearbelly- as the reply above stated, he indeed does use some flexibility, which means it is NOT entirely rule based. I ran the hard and fast rules into a backtest and guess what, doesn't make money! Not to say trader28 doesn't probably clean up with it. But yes, it is the discretionary subtleties that makes it work for him no doubt. If it wasn't, clearly everyone would just have their computers running simple 100 year old strats on autopilot on their computers. But hey, feel free to sit back, drink some more beer and do it up.
The system is as initially stated a simple profitable methodology. Entry, exit, fine tuning, intuition are the art of trading, the methodology is the science of trading... if you begin with this methodology it affords you far more room for human error because every time one of these signals is generated it works about 80% of the time
All you need do is practice your art and get as close to that 80% as possible, I only run at 60% on average so there is a lot more work ahead for me before I can say I have mastered the art
There was a great example of this yesterday when ElectricSavant was shooting for 2 points on a Friday afternoon with no news reports and a terrible range, he already had a point on a Zero Line break and I told him to take it off the table because that was the percentage play on a day like that, the market just wasn't giving you 2 points, so you must use common sense and keep it simple
All you need do is practice your art and get as close to that 80% as possible, I only run at 60% on average so there is a lot more work ahead for me before I can say I have mastered the art
There was a great example of this yesterday when ElectricSavant was shooting for 2 points on a Friday afternoon with no news reports and a terrible range, he already had a point on a Zero Line break and I told him to take it off the table because that was the percentage play on a day like that, the market just wasn't giving you 2 points, so you must use common sense and keep it simple
yeah i've alredy identified bascially two levels of BUYS and SELLS
1. Breakout Buys - where the 10 min MACD is ABOVE the 0 Line and generates a buy signal crossover. This type of signal happens quite often in a strongly trending/reversing up market.
2. Reversal Buys - where the 10 min MACD is BELOW the 0 Line and generates a buy signal crossover (yeah, I know that's not part of the original plan, but every trader makes a system his/her own). This type of signal happens when a market has trended for a while, then it retraces, and then moves back up.
3. Breakdown Sells - where the 10 min MACD is BELOW the 0 Line and generates a sell signal crossover. This type of signal happens quite often ina strongly trending/reversing down market.
4. Reversal Sells - where the 10 min MACD is ABOVE the 0 Line and generates a sell signal crossover. This is a classic "selling rallies" type of trade, where there has been strong downward movemment, the market retraces to previous support (which is now resistance), and goes tumbling back down.
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We've seen all of the above signals for the past six weeks as the market has been trending strongly upwards, with sharp reversals downwards.
Just learn to identify the market condition, and then look for the setup, and you can go a long way towards having a very profitable system.
I don't care what Cheese said, this is a nice little ditty for triggering trades when incorporated into part of an overall game plan.
Best Regards,
JJ
That was the reverse of criticism. It was a summary.
My point about 'swooping', if obscure, meant that a player would need more. To be precise, you need an accurate trigger to sell off the top of an upmove and buy on the bottom of a downmove. MACD by itself is insufficient. To cruise the whole trading day (eg YM), beginning to EOD, you want buy the upmoves and sell the downmoves, in turn, using, not surprisingly, a complete methodology.
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